In Cambodia, there is a tax on each transaction of buying, owning and selling real estate. Cambodia does not have a final tax return system for individuals, eliminating the need for application procedures, and because there is no capital gains taxation when reselling individuals, it is also attractive to avoid double taxation even if a tax treaty has not been concluded.
Taxes on Cambodian real estate
■Cost at the time of acquisition
|Asset transfer tax||4% (for those with higher selling price or property valuation)|
|Stamp duty||100-2000 Riel (about 3-60 yen)|
■Cost of time of possession
|Property tax||0.1% / year (for 80% of property valuation)|
|Real estate income tax ||10% (relative to rental income) |
※ Currently not operated for individuals
■The cost of the time of sale
|Capital gains tax||Tax exempt for individuals |
In the case of a corporation, 20% as business income tax (for gain on sale of assets)
Asset transfer tax
Asset transfer tax is levied on the acquisition of real estate at 4% of the higher of the government’s real estate appraisal value or purchase price. This is the tax you pay when you purchase a property, and no asset ownership certificate will be issued until you have paid this asset transfer tax.
When acquiring real estate, a stamp duty of about 100 to 2000 Riel (about 3 to 60 yen) will be charged depending on the property.
Property tax is levied while you own the property. Property tax is calculated by multiplying 80% of the government’s real estate valuation by a tax rate of 0.1%. However, real estate with a valuation of less than 100 million Riel (about 2.7 million yen) is exempt from tax.
Real estate income tax
This is a tax that is levied when you rent a real estate while you own it and earn rent income from the resident. 10% of the associated total rental income is taxed.
Capital gains tax
Capital gains tax is a tax on the gain on sale of real estate. For corporations, 20% of the gain on sale will be charged as business income tax. Currently, it is exempt from taxation on individuals and is not levied, but it may be levied on individuals due to future legislation.
With the development of the real estate market, the laws and regulations and tax system of Cambodian real estate transactions have been gradually improved and put in place. However, it is still in the development stage, and for that reason, there are some systems that exist but are not in operation in practice.
We collect the latest information on laws and regulations and tax systems locally as soon as possible, and support you so that you can trade with confidence.